I need some perspective from the group. Duke Energy just pushed through their 2025 rate adjustment here in Charlotte, and it's brutal. Schedule SGS customers are seeing increases of 15-19%, but the real kicker is the new "grid security fee" of $4.50 per meter per month. That might not sound like much, but I have clients with 20-30 meters who are looking at an extra $1,350-2,000 annually just in fees. This feels different from the usual rate cases. Anyone else in Duke territory seeing similar numbers?
Duke Energy Rate Shock in NC - What Just Happened?
Derek, I'm in Knoxville with TVA territory, so not directly affected, but I've been following Duke's filings closely because we have some multi-state clients. That grid security fee is showing up in rate cases across the Southeast. Georgia Power has something similar at $3.85/meter. The utilities are calling it "cyber security cost recovery." What's concerning is there's no sunset clause - it's a permanent addition to the rate structure.
I'm also in Charlotte and can confirm Derek's numbers. But here's what I discovered digging into the filing - Duke is offering a "consolidated billing discount" for customers with 10+ meters at a single location. It's buried in Rider CB-1, and they're not exactly advertising it. The discount can offset up to 60% of those grid security fees if you meet the criteria. Has anyone successfully applied for this? The paperwork looks like a nightmare.
Wayne, I haven't dealt with Duke's version, but Georgia Power has a similar program. The key is having all meters under the same account number and proving they serve a "unified operation." We got a shopping center approved last year, saved them about $2,800 annually. The trick is in how you present the facility layout and operational flow. Don't just submit the application - include engineering drawings and a narrative explaining why the meters should be considered one integrated system.
This whole "security fee" trend is getting out of hand. Alabama Power tried something similar last year, and we successfully challenged it at the PSC hearing. The problem is proving that customers are paying twice - once through the security fee and again through rate base recovery of the same infrastructure investments. Most utilities are double-dipping, but it takes serious analysis to prove it. Anyone have experience with formal PSC challenges on these fees?
Albert raises an excellent point about double recovery. We've been building a case database on these security fees across multiple utilities. The pattern is clear - utilities are capitalizing cyber security investments into rate base AND collecting them through special fees. It's definitely challengeable, but you need detailed cost accounting data from the utility. In Tennessee, we've had success with informal challenges before they get to PSC hearings. Sometimes the threat of formal proceedings is enough to get reasonable settlements.
Randy, would you be willing to share some of that case database information? Even if it's anonymized, it would be huge for building challenges here in North Carolina. Duke's rate structure is getting so complex that smaller auditing firms can't keep up. We need to start sharing intelligence if we're going to stay competitive and serve our clients effectively.
Derek, I've been thinking the same thing. What if we put together a Southeast utilities working group? Not to share clients or compete, but to pool research on rate structures and challenge strategies. Duke, Georgia Power, Alabama Power - they're all using similar playbooks. We could split the research costs and share the knowledge base. Randy, would AAUBA be willing to facilitate something like that?
Wayne, that's exactly the kind of collaboration AAUBA was founded to support. Let me talk to the board about setting up a formal working group structure. We could start with quarterly calls and a shared document repository. The key is keeping it focused on rate analysis and regulatory strategy, not client-specific information. I think there's real value in regional cooperation, especially with these multi-state utilities.
Count me in for the working group. Alabama Power just filed their 2025 case last week, and I'm seeing the same patterns you're describing. We need to get ahead of this trend before every utility in the region adopts similar fee structures. The more data we have, the stronger our challenges will be.
Perfect. I'll start putting together a preliminary framework document. Let's aim for a first call in January 2025. Derek, can you help me reach out to other auditors in the Carolinas? I think we could have 8-10 participants pretty easily, and that's enough to make a real impact on these rate cases.